There are myriads of small businesses in UAE alone. When considering the popular reasons in starting a business such as investing in yourself, working towards independence financially, the flexibility in growing the business as well as a career, and having a unique idea for business, it is no wonder why there are myriads of small businesses everywhere.
But, not every single small business will be able to succeed. As a matter of fact, most of small businesses with employees can survive for two or three years at the very least and half of that will survive 5 years. This means you’ll be in for a test as you decide in taking the responsibility and leaving your day job by becoming a business owner. In order to have the foundation for your business for success, then you need to make sure that you follow the necessary steps in starting a business.
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Here are the steps required in starting a business in UAE successfully:
Make a Plan
There is a need to make a plan for a business idea to become reality. Business plans are the blueprints that guide businesses from startup phases all through the establishment and business growth. That is why they are must-have for new businesses.
The good news with this is there are different kinds of business plans suitable for different kinds of businesses.
The financial support from financial institutions or investors, traditional business plans are a must. Business plans are generally thorough and long with common sets of sections which banks and investors can look at when validating business ideas.
If you are not anticipating financial support, the one-page business plan would suffice and already give you clarity as to what you want to achieve as well as how you are going to implement it. As a matter of fact, even a business plan that is written on a napkin can be taken and improved over time. Any kind of business plan that is written would be better than anything.
Plan the Finances
Establishing a small business in Dubai, or any part of UAE doesn’t require lots of money; however, it’s going to involve an initial investment. This includes the ability in covering expenses prior to making a profit. Putting together spreadsheets that estimate one-time costs for the startup such as market research and licenses can allow you to keep a business running in the next twelve months.
The sum would be the initial capital that you’ll require. When you have arrived on a rough number, there are ways for you to fund a small business including small business loans, angel investors, small business grants, crowdfunding, and financing.
You’ll also be able to attempt getting your business from the ground through bootstrapping with the use of little investment that is essential in starting the business. It is possible that you find a combination of the ones we mentioned earlier to work. The goal is working through the choices you have and creating the plan that sets up the business with the available capital in getting the business from the ground.
Choose the Most Appropriate Business Structure
A small business may be a partnership, sole proprietorship, limited liability company, or corporation. Business entity chosen has an impact with regards to the business name, liability of the business owner and more.
An initial structure for the business may be chosen and then change or reevaluate the structure as the business grows and requires changing.
Depending on the business’ complexity, it’s worth investing on a consultation with an expert in order to ensure you’re making the correct legal structure for the business.
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Register a Business Name
The name of the business plays a role similar to every aspect of a business; therefore, it has to be great. The name of the business has potential implications, which is why there is a need to explore options and carefully make a selection.
As soon as the name of the business has been chosen, the next step is checking if it is already in use or registered. If not, you need to undergo its registration. Sole proprietors are to register business names with the same authorities as LLCs and corporations in the UAE.
Make sure you don’t forget registering the domain name as well when you have registered the name of the business. If the domain name has been taken, then try other options.
Get the Necessary Permits
Paperwork and documentation are part of setting up a small business in UAE.
There are various licenses and permits which may apply to the business you plan on establishing, depending on where you’ll be operating in the country. If you want to make sure that you get everything that is required to commence operations, then talk to business setup experts immediately. They will be able to get you set up and advise you on what to do to remain compliant.